2nd Life Credit
Did you know...?
Limitations on the Use of the Social Security Number
Section 7 of the Privacy Act says that no federal, state, or local government agency can require someone to give out their Social Security number in order for the individual to receive any right, benefit, or privilege provided by law.
However, this section does not apply to any disclosure that is "required by a federal statute," or that is being used in a system of records that existed before January 1, 1975.
Whenever a government agency requests disclosure of the Social Security number, it must tell the individual whether the disclosure is mandatory or voluntary, what laws give the agency the authority to request the Social Security number, and how the number will be used.
We believe the more you know, the better you can improve your financial and credit life. Below are official government reports that offer helpful information regarding the legimate use and, unfortunately, the misuse of credit privacy numbers (CPNs) and tradelines.
Simply click the title links to download free copies of these valuable pdfs.
The purpose of this study is to provide insight into the breadth and depth of mortgage fraud crimes perpetrated against the United States and its citizens during 2008. This report updates the 2007 Mortgage Fraud Report and addresses current mortgage fraud projections, issues, and the identification of mortgage fraud “hot spots.”
How is a CPN Used for Credit Fraud?
Often advertised over the Internet, credit repair services offer to build a new credit file for people with bad credit.
While some of these services are legitimate, others are not and yet are able to convincingly explain that their process is legal. Unsuspecting customers are typically told that for a fee, they will be given a CPN that they can use in place of their SSN to create a new credit file. While a CPN can be a random selection of nine digits, oftentimes these new CPNs match SSNs belonging to children or deceased individuals, or mimic a valid SSN.
This new CPN number, with a new credit file, is then used to intentionally conceal bad credit and misrepresent the customer’s true credit history. Using fabricated information or a stolen SSN to obtain credit that the individual would otherwise not be qualified for constitutes fraud.
Free Government Reports
According to this same report:
Currently, federal law allows individuals to legally use CPNs for financial reporting and protects those individuals who do not wish to disclose their SSAN. Individuals who acquire CPNs are completely responsible for any debt they incur using this number.
CPNs are tools that offer you privacy and a second life for your credit - legally.
We do NOT support the use of CPNs and tradelines to defraud, hide or negliect current and/or previous credit history used on a person's social security number or on their credit privacy number.